RAMSEY CROOKALL & CO

EVENING REPORT 27 January 2011

The FTSE 100 finished in negative territory after trading sideways over the lunchtime session, with the downgrade of Japan’s credit rating by ratings agency Standard & Poors continuing to weigh on sentiment.

Mining stocks went well, however, after the US Federal Reserve indicated yesterday it would plough on with its stimulus measures. Silver and gold miners Fresnillo and Randgold Resources are the pick of the sector. Production updates from the miners Vedanta and Kazakhmys have also been given the thumbs up.

BSkyB has demonstrated why newspaper group NewsCorp is so keen to take over the satellite broadcaster, with a strong rise in profits in the six months to 31 December. Pre-tax profits climbed to £237m from £185m over the same period the previous year on revenues that rose to £1.66bn from £1.44bn. The shares are among the best-performing in the FTSE 100.

Elsewhere, TUI Travel has been hit by December’s snow and riots in Tunisia, but bookings have recovered since the weather improved. Volumes are up 14% at the Thomson Holidays owner so far this month and cumulative winter bookings are up 3% on a year ago despite having to cancel all flights to Tunisia since 15 January.

Finally, oil firm Tullow said group working interest production for 2010 averaged 58,100 barrels of oil equivalent per day (boepd), in line with the 2009 average, and is expected to average 86,000 to 92,000 boepd in 2011. The company is still trying to get approval from the Ugandan government for the sale of oil blocks within the Lake Albert rift basin to French firm Total and China’s CNOOC.

THE FTSE 100 CLOSED DOWN 4 @ 5965

THE DOW JONES AT 4.30 IS DOWN 2 @ 11,982

THE NASDAQ COMP AT 4.30 IS UP 1 @ 2740

Exchange Rates

GBP – USD 1.59 GBP - EURO 1.16